Enabling mobile money transfer the central bank of kenyas. Success stories from a dynamic continent, world bank, august 2010. The impact of m pesa in kenya isaac mbiti and david n. Insurance and financial services accounted for 7% of services exports see figure 1. O16,o33,o55 abstract mobile money is a tool that allows individuals to make. Mpesa continues to dominate kenyan market mobile world live. Within five years of its launch, mpesa had 15 million customers, equivalent to 37. Mpesa is one of the most popular mobile money transfer services in the world. The mpesa mobile payment system was launched in kenya in 2007. Practitioners insight mpesa a success story of digital.
The mpesa foundation academy wants to approach education differently. The results were presented in a table format appendix 2. Mpesa mobile money transfer service in kenya, best. Pesa agents who need cash in exchange for virtual transfers plus additional incentives. Why mpesa outperforms other developing country mobile moneyschemes. Most recently, a service called mshwari began offering mobilephone based savings. As a consequence, kenya has emerged as a leader in. However, flows were reversed during the countrys 2008 postelection. E40,o16,o33 abstract m pesa is a mobile phone based money transfer system in kenya which grew at a blistering pace following its inception in 2007. Mpesa had 27,899 agents in kenya 7, with presence of such agents growing into less affluent 2 afi, enabling mobile money transfer. M pesa agent requirements october 20 page 3 of 4 c copies of ids of office administrators and primary assistants as indicated in the application forms d completed agent application forms ii non. This study sought to determine the impact of mobile and internetbanking on performance of financial institutions in kenya where the survey was conducted on financial institutions in nairobi. The m pesa foundation academy is a state of the art, coeducational and residential high school offering the kenyan national curriculum.
In 2007, kenya s population was estimated at 36,9,721 and its growth rate at 2. Kenya stepped into the arena of mobile money transfer services in 2007 through the successful launch of mpesa by safaricom1, a mobile network operator mno mas and radcliffe, 2010. Today, as it faces new challenges, it has 30 million users in 10 countries and three continents. There have been some notable successes, such as vodafone safaricoms mpesa in kenya. Social networks of mobile money in kenya companies and schools, pay as you go solar power, and microloans. Anyone can send money in all over kenya through mpesa. Pdf in recent times, inexpensive mobile phone technology has become.
The economics of mpesa william jack and tavneet suri nber working paper no. Social networks of mobile money in kenya home imtfi. Microsoft edge is the default program for opening pdf files on windows 10. Case study enabling mobile money transfer the central bank. M pesa flows reversed during kenya s postelection crisis, with rural users sending money and airtime to urban contacts. Kenya 8 rihts reserved 2018 rost ivan pestle analysis chart 5.
Titled, money, real quick the story of mpesa, the book, credits kenya for the growth of mpesa. The case of mpesa in kenya olga morawczynski, university of edinburgh gianluca miscione, university of oslo abstract this. Mpesa is a money transfer system operated by safaricom, kenyas largest cellular phone. Reaching the unbanked kenyas mobile market 35% household own phone 23% banked 20% 45% no access 77% unbanked mpesa was launched to target mobile subscribers who were. Associate pdf files to always open in reader or acrobat on. The executives at vodafone and safaricom recognized that a mobile financial service could address many of the problems present in. Mpesa launched in kenya during 2007 and is often held up as an example of the transformative impact mobile money services can have on a country.
Executive summary although kenya is a middleincome country with a robust economy, millions of kenyan children live in poverty. In 2016 over 75% of the adult population in kenya m pesa started in 2007 as an electronic money transfer product. To study how mpesa has affected risk sharing in kenya, we analyze data from a large household panel survey conducted between late 2008 and early 2010. This is especially true in kenya, where mpesa, a mobile money banking services. Financial services for the underbanked contributed. Mpesa is a mobile money transfer service in kenya, its one of the best online payment options. Speakers in these audios are african americans so if youre familiar transcribing this accent please apply. Due in part to mpesas success, financial inclusion among kenyans. Mobile money, trade credit and economic tilburg university. International journal of community currency research volume 19 2015 section d 1830 complementary currencies for sustainable development in kenya. Mpesa was initially launched by vodafone in kenya in march 2007, providing a simple yet highly secure platform from which to send and receive payments. The impact of mpesa in kenya isaac mbiti and david n. Policy innovations to improve access to financial services. Background kenya is a developing country with a total population of 43 million people.
Pesa with indias icici bank, targeting 220 million of indias 700 million under and unbanked people incorporating mpesa into national financial regulatory frameworks has proved challenging. We examine how mpesa is used as well as its economic impacts. Safaricom dealers a copies of memorandum and articles of association b copies of vat and pin certificate where applicable c list of outlets. Furthermore, the study shows that mpesa is ahead of 34 kenyan banks in international money transfers. Mpesas impact in kenya put mobile money services on the map. The purpose of this study was to establish the growth strategies that safaricom limited company had implemented for mpesa service and the impact on its performance. International journal of community currency research. Cocacola is the obvious candidate for this third solution, since they have a wellestablished distribution network in.
Introduction in this guide, you are going to learn how to develop mpesa integration to website. One notable example of mobile money technology developed in kenya is mpesa m stands for mobile and pesa means money in swahili. Due in part to m pesa s success, financial inclusion among kenyans grew from 27 percent in 2006 to over 75 percent in 2016 cbk, knbs, and fsd kenya 2016. Mpesa and the rise of the global mobile money market. E40,o16,o33 abstract mpesa is a mobile phone based money transfer. Mpesa flows reversed during kenyas postelection crisis, with rural users sending money and airtime to urban contacts. Mobile financial services such as mpesa in kenya are said to. You can change the default program for pdf files to open it in a program thats more suitable and featurerich, such as acrobat reader dc or acrobat dc. Productivity, innovation, and entrepreneurship mobile money. About kenya kenya, considered an economic hub of east africa, lies astride the equator. Sage helps academy create next generation of leaders.
Rapid development of information technology has made banking tasks more efficient and cheaper. Kenya, considered an economic hub of east africa, lies astride the equator. A case study of the critical early adopters role in. Money transfers typically flow from urban centers to rural areas in kenya. Low mpesa was the first mobile money transfer service to be launched in kenya. Do the mpesa rails contribute to financial inclusion. The lack of competition enabled safaricom to capture the market and lead. M pesa is a smallvalue electronic payment and store of value system that is accessible from ordinary mobile phones. The case studies are, equity ank, safaricoms mpesa, kenya post office savings bank and musoni kenya limited. Pesa is hugely successful in kenya and less so elsewhere and mpesa. The operational problems of cash transfers in kenya. Pdf an analysis of mpesa use in international transactions.
Mpesa is a mobile phone based money transfer system in kenya which grew at a blistering pace following its inception in 2007. Mpesa was developed by mobile phone operator vodafone and launched commercially by its kenyan affiliate safaricom in march 2007. Most colleges in kenya are focused on academic results, says githuka. In kenya, mpesa was launched in 2007 after safaricom, a leading mobile services provider, had noticed that customers exchanged airtime to transfer money between. Driven by leadership, entrepreneurship, technology and innovation, the academy serves talented but economically disadvantaged students with demonstrated leadership potential. Pestle chart, kenya factors description ict impact political kenyas 2012 and 2017 presidential elections were both. As a consequence, kenya has emerged as a leader in financial inclusion in subsaharan africa. The mpesa revolution that launched kenya to a leading position in the development of mobile money has led the way to the systematic study of the potential of digital finance to improve lives and strengthen. In 2017 unicef kenya, together with kenya bureau of statistics.
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